In FY24, the initial revenue target was set at Rs 4.3 lakh crore, a growth rate of 30%. However, as the target was not met, the government reduced it by Tk 20,000 crore to Tk 4.1 lakh crore. The National Board of Revenue (NBR) has set a revenue target of Rs 4.8 lakh crore for the upcoming FY25, representing a 17% increase over the revised target for the current fiscal, sources in the finance ministry said.

In FY24, the initial revenue target was set at Rs 4.3 lakh crore, a growth rate of 30%. However, as the target was not met, the government reduced it by Tk 20,000 crore to Tk 4.1 lakh crore.

According to NBR data, revenue authorities' collections in the first nine months were less than Rs 2.6 lakh crore, a growth rate of 15%.

Experts say the new target is achievable, but to reach it NBR needs to increase its capacity through proper automation.

Prof Mustafizur Rahman, distinguished fellow at the Center for Policy Dialogue, said, "If the government sets a revenue growth target of 17% for the coming fiscal from the revised target, it will be achievable as NBR has significant revenue collection potential." (CPD), told TBS.

"However, there is a need for extensive digitization and integration between NBR's departments and other agencies," he added. "If the government can raise more revenue, it will help reduce reliance on debt and increase government spending."

Mustafizur Rahman also said that currently government expenditure in Bangladesh is about 12% of GDP, while India's expenditure is more than 22%.

According to Finance Ministry sources, the income tax collection target for FY25 is Rs 177,600 crore, with a growth target of 20%; Value Added Tax (VAT) collection target of Rs 177,600 crore, growth target of 17%; and import tax target of Rs 124,000 crore, growth target of 12%.

"The target for the coming fiscal will be achievable considering the current revenue growth trend, which is over 15%," a senior NBR official told TBS on condition of anonymity.

"We are working hard to expand the tax net and take measures to curb tax evasion, which are already yielding results," he added.

He also said there is uncertainty over the implementation of government development projects linked to increase in imports and significant revenue.

Former NBR member Md Farid Uddin told TBS, "There is no sign of economic recovery, which is currently slow. Without speed in the implementation of import and government development projects, it will be difficult for NBR to reach. A relatively easy target.